• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Trade Alert - (ABX) September 21, 2017

Trade Alert

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.


Alert

Trade Alert - (ABX)- STOP LOSS

SELL the Barrick Gold (ABX) October, 2017 $15-$16 in-the-money vertical BULL CALL spread at $0.81 or best

Closing Trade

9-21-2017

expiration date: October 20, 2017

Portfolio weighting: 10%

Number of Contracts = 112 contracts

 

Janet Yellen's decision yesterday cut the knees out from under the gold trade, at least for the short term.

She didn't raise rates, which is gold positive.

However, she did produce a firm timetable for when the Fed will sell its massive $4 trillion bond hoard, some $6 billion a month.

That is very gold negative. It is also terrible news for gold and silver miners and bonds of every description.

So I am going to stop out here with a small loss in my position in the Barrick Gold (ABX) October, 2017 $15-$16 in-the-money vertical BULL CALL spread at $0.81 or best.

Better to eliminate my risk and live to fight another day until this cat among the pigeons sorts itself out.

This is why I took profits in my other four positions in precious metals three weeks ago.

To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.

If you are uncertain on how to execute an options spread, please watch my training video on How to Execute a Vertical Bull Call Spread by clicking here at
http://members.madhedgefundtrader.com/ltt-vbpds/

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.

Don't execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

Here are the specific trades you need to execute this position:

Sell 112 October, 2017 (ABX) $15 calls at.......................................$1.55
Buy short 112 October, 2017 (ABX) $16 calls at.........................$0.74
Net Proceeds:............................................................................$0.81

Loss: $0.88 - $0.81 = -$0.09

(112 X 100 X -$0.09) = $1,008 or 11.11% in 5 trading days.

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://www.madhedgefundtrader.com/wp-content/uploads/2011/10/slider-05-trader-alert.jpg 316 600 Douglas Davenport https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Douglas Davenport2017-09-21 10:46:172017-09-21 10:46:17Trade Alert - (ABX) September 21, 2017

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: September 21, 2017 - MDT Pro Tips A.M. Link to: September 21, 2017 - MDT Pro Tips A.M. September 21, 2017 - MDT Pro Tips A.M. Link to: September 22, 2017 - MDT Pro Tips A.M. Link to: September 22, 2017 - MDT Pro Tips A.M. September 22, 2017 - MDT Pro Tips A.M.
Scroll to top